After the adoption of the law on apartments, it will be possible to register in them, promised Deputy Minister of Construction and Housing and Communal Services of the Russian Federation Nikita Stasishin. He also noted that the construction of apartments will be regulated by the same law 214-FZ, which applies to shared-equity housing construction.
The Ministry of Construction published a draft law equating apartments to ordinary apartments in early October. The document introduces the concept of a multifunctional building, in which both non-residential and residential premises - apartments - can be located.
The bill defines apartments as “structurally separate premises in a multifunctional building intended for the residence of citizens and their satisfaction of household and other needs related to their residence.”
The same norms of the Housing Code will apply to apartments in multifunctional buildings as to residential premises in multi-apartment buildings.
Owners of non-residential premises in buildings commissioned before January 1, 2019 will be able to transfer these non-residential premises into apartments until December 31, 2021. The procedure and conditions for such a transfer should be determined by regional authorities. The Ministry of Construction only requires to ensure “the safety of citizens’ permanent residence in such premises and the safe operation of such premises.”
The new law will be a pleasant surprise for many apartment owners. Today, the share of this type of real estate in the Moscow new buildings market is 20−25%. Last year alone, about 800 thousand square meters of apartments were put into operation - twice as much as the year before.
This type of real estate is cheaper for both the developer and the buyer than ordinary apartments due to reduced regulatory requirements - for insolation, sound insulation, and sanitary standards. And there are no requirements for social infrastructure for apartments at all.
Cost of 1 sq. m of apartments turns out to be 30-50% lower than in normal apartments. In conditions of declining incomes, this is often a decisive factor for buyers.
However, there are a number of other problems associated with apartments. In particular, utility and tax payments for this type of property are calculated at rates that are 15-20% higher than for ordinary apartments. But the main problem is that apartment owners cannot obtain permanent registration and, accordingly, be attached to clinics, schools, kindergartens and other social infrastructure.
Photo: Portal of the mayor and government of Moscow
Long story
Discussions about the need to recognize apartments as housing have been going on for several years. However, they all rested on the non-compliance of the apartments with the standards established for residential premises. The situation began to change only this year.
In April, Prime Minister Dmitry Medvedev, reporting to the State Duma on the work of the Cabinet of Ministers, called for intensified work in determining the status of apartments by improving housing legislation.
In June, Deputy Mayor of Moscow for Urban Development Policy and Construction Marat Khusnullin said that the Moscow government was preparing amendments to legislation that would equalize the status of apartments and housing.
In September, the Institute of Urban Economics sent proposals to the Ministry of Construction and Housing and Communal Services of the Russian Federation to amend the Housing Code to recognize apartments as one of the types of residential real estate. In fact, these proposals formed the basis of the bill published by the Ministry of Construction.
The main advantage of this document is the right of apartment owners to register and use the social infrastructure at their place of residence. However, some restrictions will remain.
According to sources, authorities are going to maintain increased property tax rates and utility rates for apartments.
In addition, not all existing apartments will receive the status of residential premises. Premises located adjacent to existing industries, especially hazardous ones, will be deprived of this opportunity.
In any case, apartment buyers must take into account the risk that their neighbors may, if they wish, engage in commercial activities - for example, open a sewing shop, a dental office or a restaurant, rent out their apartments to anyone, that is, make their neighbors’ stay very uncomfortable.
Due to such restrictions and risks, the price of apartments, even after the new law comes into force, will remain lower than the cost of normal apartments. But, most likely, not by 50%, but only by 10-20%.
For realtors and developers, the new law could become a serious headache, since a large volume of new supply will enter the Moscow residential real estate market. In September, Moskomstroyinvest estimated that of the 800 thousand square meters of apartments being built in the capital, almost 30% are on land allocated for hotels, and another 20% on land allocated for buildings for temporary residence. So the decline in prices for capital housing will continue at an accelerated pace, especially in the budget housing segment.
The intriguing name “apartments”, which recently burst into the Russian market for the purchase and sale of elite and affordable housing, attracts many wealthy and middle-class buyers with its novelty and exclusivity. This category of commercial real estate includes hotel rooms, premises in hotels, rooms in sanatoriums and holiday homes.
Often, after a completed transaction, the new owner of the purchased residential, or, more precisely, non-residential (according to the official status) premises, is faced with the unpleasant fact that he will have to defend his purchase as the main place of residence, and resolve the issue of registration. It is necessary to know in advance about all the nuances of such real estate, and in the event of a completed transaction, not to get lost, but to make a decision in accordance with the existing legislative framework and the specifics of the situation.
The majority of apartment-type housing is purchased in Moscow. The metropolitan metropolis attracts many with its opportunities, and housing is often chosen in accordance with the status and financial capabilities of the owner. In order to prevent or minimize possible problems with purchased apartments, you need to know the legislative framework for this situation and skillfully use it.
Apartment Law
Based on current laws, apartments that include hotel-type premises cannot be classified as residential. A problem arises when a person permanently lives in an apartment, but cannot obtain a residence permit.
As a result of the accumulated questions regarding such situations, the Apartment Law was brought up for consideration. His main questions:
- recognition of apartments as one of the types of housing at the legislative level;
- legal registration in the apartment;
- creation of infrastructure in the area where apartment housing is located;
- giving individual apartments the status of housing;
- the applicability of Federal Law 214 On participation in shared-equity construction to this category of housing;
- improvement of the taxation system for premises of this type.
The new law should solve numerous problems of apartment owners.
Since there is still a high demand for apartment housing in Moscow. New projects are created, sales transactions are made, and as a result, popular housing still has the same dubious status.
If the Law on Apartments is adopted in 2019, they will be given the status of residential premises. The apartments will have several distinctive advantages over conventional housing.
Children living in such residential premises will not have a regional reference when assigned to a kindergarten or school. You can choose any preschool and school institution in the city to visit and study. At the same time, there will be some disadvantages in the apartment direction. Thus, payments for utility services are planned to be approximately 1/5 higher than in ordinary residential premises. The adoption of the Apartment Law is expected in 2019.
Is it possible to register in the apartment?
How is it carried out today? registration in the apartment?
The registration system for registration is based on the existing Federal Law No. 5242-1 of the Russian Federation, as well as Russian Government Decree No. 713. According to these documents, apartments are not residential premises in which residence can be permanent.
Permanent residence in the apartments cannot be granted based on the above-mentioned laws. The only option is to register at the place of residence for temporary registration in hotel housing options. The period of such registration can range from 1 month to 5 years. When purchasing apartments, you should know that registration in them is not possible under any circumstances until now.
Housing in apartments, unlike standard housing
The main distinguishing features of apartments compared to ordinary housing are the following indicators:
- inability to obtain permanent registration;
- the minimum total area of the apartment must be at least 40 square meters. m.;
- the presence of 2 or more residential rooms;
- temporary registration for a period of no more than 5 years;
- higher taxes on real estate ownership;
- availability of service personnel.
The advantages of the apartments are a higher level of infrastructure and highly aesthetic design of the premises.
Many everyday problems in hotel-type apartment housing are solved by service personnel.
What is a loft
A loft is an industrial type premises converted into residential.
In a loft there is usually no living room and kitchen. The room is designed as a studio.
The main advantages of the loft:
- low purchase price;
- originality of design.
Disadvantages of loft:
- high utility bills
- lack of a proven taxation system
- inability to obtain registration and temporary registration.
Lofts are often located in industrial areas and, most often, are of interest to lovers of unusual housing design, or to those looking for a place to live close to work.
How to register in an apartment (at your place of residence), the procedure and its features
The question “is it possible to register in an apartment” is the most relevant today.
Since permanent registration in apartments has not yet been legalized, the only option for at least some justification for permanent residence in this type of housing is temporary registration.
Registration in apartments is possible if the premises are transferred from non-residential status to residential category.
Carrying out such a procedure will require a lot of time and large material costs. At the initial stage, you must receive a document confirming the legality of registration of ownership of the purchased apartments. Next, a package of necessary documents and an application to consider the possibility of changing the housing category are submitted to the local administrative authorities. Whether the premises in question will change its status will be decided by the authorized commission.
Another option for obtaining permanent registration is to go to court. But in this case, you will have to prove that the premises comply with all residential standards.
Temporary registration in apartments at the place of stay, algorithm of action
Temporary registration in apartments is the most acceptable option today for legitimizing your residence in them.
You can register for the apartment according to the following plan:
- prepare originals and copies of the passport and certificate of ownership of the premises
- a package of documents is submitted to the office of the Federal Migration Service in person or to a multifunctional service center
- after considering the application and making a positive decision, the owner of the apartment will have to appear in order to receive a temporary registration mark in the documents
When registering temporarily, you may need a rental agreement, as well as arrival or departure sheets.
Apartments and utilities
Utility payments in apartments most often exceed the usual monthly amount in ordinary apartments.
This indicator is formed from the following components:
- water charges are 17-20% higher
- sewerage fees are 18-19% higher
- electricity charges are 20% higher
As a result, you have to pay about 300-950 rubles more. Over the course of a year, the difference in the amount of utility bills will be up to 10 thousand rubles or more.
Payment for apartments is made not by the hotel, if they are located on its territory, but by their owner. Since this type of premises is not intended for permanent residence, the cost of services is charged at rates for legal entities, i.e. at a higher rate.
Apartment owners incur annual costs that exceed the costs of apartment and house owners by an average of 20–45%.
Additionally, real estate tax is paid at the tax rate for office premises and 0.5% for others.
Apartment taxes are paid in the following amounts:
From 50 sq.m. – 15,700 rubles per year.
From 70 sq. m. - 22 thousand rubles per year.
From 80 sq.m. – 25 thousand rubles per year.
Despite all the existing difficulties, it will soon become quite possible to register in an apartment. At the same time, the purchased housing will be distinguished by its non-standard design and belong to the elite class.
In Russian legislation there is no clear definition of what an apartment is. This property does not fall under the concept of residential, but essentially it is not commercial either. Such confusion often misleads buyers. AiF.ru asked experts about what apartments are, the dangers of such an acquisition, and what awaits this type of real estate in the future.
In the Central Administrative District without registration
Apartments are non-residential premises that can be used for living. But the word “non-residential” does not mean that you cannot live in them: most often, in appearance they are no different from apartments. However, unlike apartment residents, the apartment owner cannot count on registration and permanent registration. This means that he will not have the opportunity to obtain a tax identification number, use health insurance, or participate in government programs to improve living conditions. In addition, it will be possible to enroll a child in school only on a first-come, first-served basis, after places have been distributed among those who have permanent registration.
Apartments are not subject to standards for housing construction: the developer is not obliged to provide such neighborhoods with social infrastructure, and the building density of apartments can exceed 25 thousand square meters. m per hectare. Another important difference between apartments and apartments is that they are not subject to Federal Law No. 214 “On Participation in Shared Construction,” which means that shareholders cannot be considered victims if problems arise.
Initially, the word “apartment” meant expensive real estate for the temporary residence of wealthy people. “More than half of the apartment complexes are located within the Central Administrative District, and these are mainly elite or business class projects,” she said Irina Mogilatova, CEO of Tweed real estate agency. Their appearance was due to the fact that there was no room left for housing construction in the center of the capital. For buyers of luxury real estate, neither registration nor social infrastructure most often mattered. Such housing was not purchased for permanent residence, and the most important thing was its location in the Central Administrative District.
However, since last year the situation has changed. “Over the past year, low-price segment properties began to actively enter the market. At the same time, sales analysis shows that there is high demand for these products,” says Alexander Engel, head of the new buildings department of the MIC Group of Companies.
Cheap housing, expensive housing and communal services
The popularity of apartments is due to their low cost. “In projects with similar characteristics, the cost per sq. m of apartments are usually lower than the price of sq. m. m of apartments by 20-25%. Today the average price per sq. m of apartments in Moscow is 213 thousand rubles, the minimum is 100 thousand rubles. per sq. m.,” explained Head of Analytics and Consulting Department at NDV-Real Estate Elizaveta Gudz. The low price is due to other requirements that apply to such objects. According to Sofia Lebedeva, General Director of MIEL-Novostroiki, standards for the construction of non-residential premises, in particular for sound and heat insulation, insolation (illumination), as well as for the provision of social infrastructure, during the construction of apartments are less stringent than for ordinary residential complexes.”
Another feature of apartments is the higher cost of utility bills. “According to their legal status, apartments are non-residential premises, hence the higher tariffs, which usually differ by the VAT rate. Payments for water will be higher by 10%, for heat - by 25%, electricity will be more expensive by 27% (based on the average tariff of 2.5 rubles/kWh). In absolute monetary terms, the monthly rent for apartments with an area of 80-100 sq. m will be higher than that of an apartment of the same area, by about 2-2.5 thousand rubles. At the same time, apartment sellers assure that the discount that the buyer receives when making a transaction covers the difference in payments for many years to come,” notes Olga Khasanova, head of development of the urbanus.ru portal.
Single people and landlords
The apartments are in demand among different categories of buyers. “They are most often bought by young people, couples with children, single men and older women (40-45 years old). They are attracted by their price, good location, surroundings and original architecture of such objects. Also, due to the low cost of the “entrance ticket” in the apartment segment, the share of investment buyers is large - it reaches 25-30%. They can return the money with a profit when the complex is completed, or receive a stable income from rental (rent rates for apartments and apartments are no different),” said AiF.ru Maria Litinetskaya, General Director of Metrium Group.
Social explosions
The position of the Moscow authorities regarding the apartments was announced chief architect of the capital Sergei Kuznetsov in February. He proposed dividing apartment projects into two types - housing and hotels, and providing all the necessary infrastructure. In the future, the city government plans to oblige developers to include it in the project during construction. The chief architect of the capital mentioned the social explosions associated with apartments that have already occurred in Moscow: “People who bought apartments are en masse demanding social infrastructure from the city. They say: “We live in the city, we pay taxes, so why are we worse than those people who live in normal houses? The state did not explain to us that we did not have to buy apartments and live here with children.”
The future of apartments
According to experts, statements by the Moscow authorities will be able to change the market for economy class apartments in the capital. “Social infrastructure facilities do not bring any income to developers, and the cost of their construction is quite high. Of course, our developers are accustomed to shifting all their costs onto the shoulders of buyers, so the cost of apartments may rise. As a result, the introduction of new standards, of course, will not “kill” the apartment format, but will greatly change its development,” says Maria Litinetskaya.
“At the end of 2014, we can expect an increase in the total area of apartments on offer in the region of 7-9% compared to the 4th quarter of 2013. We assume that the apartment market will develop along the path of affordability, which means that the supply of comfort and economy classes will increase. This will also be facilitated by the government's current urban planning policy related to the development of former industrial zones. The weighted average supply price for apartments in “old” Moscow at the end of 2014 will undergo downward adjustments within the range of 3-4%,” predicts Head of Consulting and Analytics Department at Azbuka Zhilya Daria Tretyakova.
Let us remind you that apartments are non-residential premises that are sold as property and used for living. This format is only formally suitable for housing; it is legally impossible to register in such an “apartment”.
Apartments have been actively entering the Moscow real estate market over the past few years. The bulk of the supply of this type of real estate is now concentrated in Moscow on the premium and business class housing market. Most multifunctional complexes with apartments are being built in the Moscow City International Business Center. But only recently have sporadic projects begun to appear in economy and comfort class housing.
Let us remind you that apartments are non-residential premises that are sold as property and used for living. This format is only formally suitable for housing; it is legally impossible to register in such an “apartment”. In Moscow, apartment complexes appeared mainly because developers wanted to make more profitable use of land intended for the construction of commercial buildings.
Many doubted the success of the format, but it found a response among investors in the premium real estate market. Firstly, premium home buyers are not concerned about the issue of registration, since this property is far from the first in their portfolio. Secondly, by purchasing apartments, for example, in one of the towers in Moscow City, you can become the owner of an apartment with luxurious views, with hotel service, and at the same time, at a price that is 30 percent lower than similar offers on the luxury housing market. And lastly: buyers of expensive housing often travel abroad and see very well that in the West this format of living is common.
It's all about registration
Another thing is for buyers of budget housing, for whom the issue of registration is very important. The idea that, having spent several million rubles and becoming the owner of a long-awaited home, you will not be able to register in it, simply does not occur to them. Could this format of real estate become popular among buyers of inexpensive housing, are they ready to go against the standards and give up the opportunity to obtain a residence permit, and what advantages do they get if they do choose apartments?
According to Olga Shirokova, director of the consulting, analytics and research department at Blackwood, the apartment format has not yet enjoyed great success in the economy class. And not only for buyers, but also for developers. “One of the first complexes with apartments was an economy-class residential complex of the KOPE-Parus series at Yaroslavskoye Shosse, 122-124, built in 2007. However, it is very noteworthy that it still remains the only object in its class in Moscow,” - says a representative of the Blackwood company.
According to the head of the project examination department of the MIEL-Novostroiki company, Anna Sokolova, the reason that mainly high-budget class apartments are being built in Moscow, and not economy ones, is in the specifics of such objects. “The pace of sales has been reduced, in addition, the price per square meter should be at a discount to housing in the area, which is difficult for the developer to implement, given the high cost of construction in Moscow,” she explains.
The main problem why low-cost apartments may not find a response from buyers, according to the head of the Arbatskoye office of the INCOM-Real Estate company Daniil Razdolsky, is that the majority of even the capital’s public does not even know what it is. “For us, this format of real estate is new and quite unusual, therefore, like everything new, apartments arouse interest, but not necessarily a desire to buy,” he believes. But what scares off potential buyers, of course, is not only the novelty, but banal things, including stereotyped thinking and stereotypes that have developed over many years of Soviet-Russian life. “You cannot register in an apartment - this is the only factor that is currently preventing this new format of housing from taking root. In all other respects, apartments are in no way inferior to ordinary apartments. The problem is that the institution of registration, no matter how absurd it may be by definition, has been taking root for years in Russian society and already exists at the level of the psychology of our citizens,” the expert is sure.
There are pioneers
Analyzing the budget apartment market, we were able to find only a few similar offers that are located in the Moscow region. The first apartment complexes in the inexpensive segment on the primary housing market in the Moscow region began to be built by Morton Group of Companies. The developer is currently implementing three multifunctional complexes, which include 1.3 thousand apartments. According to Igor Ladychuk, PR Director of the Morton Group of Companies, one of the projects, the Headquarters in the 1 May microdistrict in Balashikha, has already been built, commissioned and implemented. Despite the fact that many experts are skeptical about the prospects for the development and popularity of budget apartments, Morton Group of Companies talk about high sales. “Today, only one apartment remains in our database. Against the backdrop of successful sales experience, we have begun the implementation of two more mixed-use complexes with apartments,” notes a representative of the development company. Construction of the second complex is currently underway on the territory of the May 1 microdistrict and the multifunctional complex in the Shchitnikovo microdistrict.
As for other apartments in this segment, Blackwood named only the Yakhontovy Les country complex (developed by Avantel-Invest). There are no other offers on the market yet.
Advantages and disadvantages
If you pay attention to the sales experience of the only completed project in this segment, such an offer is in demand. But at what cost? Why did buyers choose apartments over the standard apartment format, when this option has obvious disadvantages... According to Olga Shirokova, the advantage of such real estate is the price discount. “In the economy class segment, where the price factor is decisive, this factor can offset all the shortcomings,” she believes.
This opinion was confirmed by Igor Ladychuk using the example of a completed project. "Some buyers chose apartments due to the slightly lower cost of apartments, by 10-15% at the initial stages of construction of the complex, as well as the possibility of choosing apartments of small areas - 33-35 sq. m in one-room apartments, which also increases the cost of the transaction lower," he notes. However, the difference in price is noticeable only at the initial stages of construction of residential and apartment complexes. For comparison, in the Shchitnikovo area, prices for apartments in a mixed-use complex at the initial stage of construction are 57.5 thousand rubles. for 1 sq. m, and the cost in the apartments of the neighboring house of series 111-M is 63 thousand per 1 sq.m. The difference in price per square meter is therefore about 10%. As the stage of construction increases, the difference in price between apartments and apartments is leveled out.
If we talk about the disadvantages of such complexes, then, according to Olga Shirokova, there may be disadvantages of the project itself, since less stringent requirements apply to apartment complexes than to residential projects. True, the expert clarifies that more and more developers, when developing apartment projects, are guided by the requirements for residential projects in order to ensure the competitiveness of the complex. But it does not exclude that with such construction there is a possibility of a low level of infrastructure provision. Although, for example, the second mixed-use complex in the residential microdistrict "May 1" in Balashikha is a modern monolithic brick building, built according to an individual project, differing in more interesting architecture from residential buildings (for example, a ventilated curtain facade), with a cinema, a billiards club , its own underground multi-level parking, a restaurant court, shopping galleries and other infrastructure, the services of which the owner of the apartment can use, so to speak, without leaving home. Residents of ordinary houses are deprived of this opportunity.
As Anna Sokolova notes, among the disadvantages of apartments is the lack of residence permit and registration, which causes difficulties in assigning residents to a clinic, kindergarten, school, etc. Although, as Olga Shirokova assures, now in many social institutions there are no strict requirements for territorial assignment, therefore This factor does not create significant problems. “However, the very fact of the presence or absence of these social institutions may turn out to be fundamental, since the apartment developer is not responsible for providing future residents with infrastructure,” she notes.
The second disadvantage, according to Anna Sokolova, is increased utility bills. “Apartments belong to the non-residential stock, and here housing and communal services payments are approximately 15-20% higher,” she reminds.
For the future
Today, apartments are bought either for their own residence (people for whom registration at this particular place of residence is not important), or for investment purposes - rental. In economy class, apartments are purchased only because of the opportunity to save money: small square footage, discounts at the start of sales do their job. The remaining factors are rather negatively perceived by potential buyers; the majority opt for ordinary residential apartments. But, according to Daniil Razdolsky, despite the low demand today, there are prospects for development, because the institution of registration in our country will sooner or later die. He recalls that in the classical Western sense, living in an apartment implies a certain service by default, like in a hotel: cleaning, laundry, courier, food at home. “Of course, for now our citizens are accustomed to making do on their own, but with the increasing availability of the listed services, I am sure their popularity will also increase. For example, once upon a time not everyone could afford to go to a restaurant, and today even students sit in cafes while studying. The approach to housing will gradually change, and prejudices regarding apartments will also become a thing of the past,” the expert concludes.
Olga Petrova
Changes are planned to be made to the law of the Russian Federation “On the right of citizens of the Russian Federation to freedom of movement, choice of place of stay and residence within the Russian Federation.”
Now citizens can register at their place of stay in sanatoriums, hotels, and rest homes. The same opportunity can be provided to those who live in apart-hotels. At the same time, the bill still positions apartments as non-residential premises.
“To do this, it is necessary to amend 214-FZ, according to which developers constructing apartments using public funds must also transfer insurance payments to the compensation fund to protect the rights of participants in shared construction,” explained the head of Moskomstroyinvest.
Let us remind you that half of the apartments are being built in former industrial zones or are located in former industrial buildings.
About 30% of apartments appear on sites intended for the construction of hotels, 20% - on sites for the construction of buildings for temporary residence of people.
From a legislative point of view, these are non-residential premises intended for temporary residence. Other sanitary standards and insolation requirements apply to apartments.
They are not subject to the law on silence, there may be no local area, social services will be provided on a residual basis.
The advantage of apartments is their cost, which is 15-20% lower than traditional